Ahmadinejad to meet economic detractors

Irans president, Mahmoud Ahmadinejad, waves to tourists during a visit to the ancient imperial city of Persepolis. Photograph: AFP/Getty Images

The Iranian president today extended a surprise olive branch to his domestic critics by agreeing to meet experts who warned his economic policies risked plunging the country into financial chaos.

In a marked departure from his usual abrasive approach, Mahmoud Ahmadinejad said he wants "dialogue" with 57 economists who criticised him in an open letter, for policies that they claimed fuelled inflation, hurt the poor and laid the seeds of future crises.

The letter earlier this month - whose signatories included former economic advisers to previous governments and an ex-head of the Tehran stock exchange - also accused the government of lavishing Iran's oil revenues into ill-conceived projects while masking its economic failures behind falsified statistics.

"The price of decisions that have no scientific basis is very high and irreversible, in particular for those who are worst off," the letter said.

Mr Ahmadinejad has dismissed those voicing similar criticisms as politically motivated and acting in the interests of corruption or foreign powers.

But in a distinct turnaround, the president's spokesman, Morteza Ghamaravafa, said he took an open-minded view towards the letter, which followed months of public and media complaints over rising living costs.

"The president, after being informed of this letter, expressed his readiness to provide an opportunity for direct, frank and friendly talks with its signatories, in order to gain a close-up awareness of his critics' views," he said.

The offer comes as the UN security council's permanent five members plus Germany discuss possible fresh sanctions against Iran for defying the latest deadline for suspending uranium enrichment. Experts have expressed doubts over the economy's capacity to cope with deepening sanctions.

The stock market reacted with panic last month after Mr Ahmadinejad ordered banks to slash interest rates to 12%, well below inflation, unofficially estimated at 20-30%.

Economists accuse the government of depleting Iran's foreign currency reserves to fund its extravagant spending policies. Despite oil revenues of £27bn last year, they also say non-oil exports have plunged since Mr Ahmadinejad took office two years ago, leading to a negative balance of payments.

Iran last week postponed for a month the introduction of petrol rationing, intended to cut the cost of providing hugely subsidised fuel to motorists.